In a Sharp Regression Discontinuity Design

question 7

Multiple Choice

In a sharp regression discontinuity design,

• A)crossing the threshold influences receipt of the treatment but is not the sole determinant.
• B)the population regression line must be linear above and below the threshold.
• C)Xi will in general be correlated with ui.
• D)receipt of treatment is entirely determined by whether W exceeds the threshold.

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Definitions:

Merit

Merit refers to the quality of being particularly good or worthy, especially so as to deserve praise or reward.

Productivity

The measure of how efficiently goods and services are produced, often expressed as the ratio of outputs to inputs.

Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain at a constant.

Average Total Cost (ATC)

ATC refers to the per-unit cost of production, calculated by dividing the total costs by the quantity of output produced.